The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-01-08
GOVERNOR GRAY'S MESSAGE.
AReyiew at Great Length of Official Re-
ports and Affairs of the State.
recommendations Relative to Needed Legis-
lation on Matters Affecting Public Inter-
ests-The States Institutions.


!. pressed the hope that, in dedicating the new
Sta.e-house to legislative purposes, the General
Assembly would. in the results of its session,
s1eave an enviabe and honorable record to
which, at all times, it would have just cause to
refer with becoming pride"
THE STATES FINANCES.
After giving a statement of the States out
standing indebtedness, as exhibited in the
Auditor of States report, the Governor COM
mented on the financial affairs of the State gov
eminent as follows:
For the past ten years the tax levy for State pur-
poses has been fixed by law at 9 cents the
hundred dollars, and at the time such levy fixed
itwas only deemed to be sufficient to meet the usual
and ordinary expenses of the State and its Institutions
In that period the State has largely developed in her
material financial and commercial resources and the
of the maintenance of her institutions has also
Increased on account of the increased number of in
mates New offices have been created, and duties
have been added TO the old Offices which have likewise
largely aided in increasing the current and ordinary
expenses of the State In addition to such expenses,
there have been from time to time each General
Assembly convened. appropriated from the general
fund from which all the expenses of the State gov
eminent ana her institutions are paid large sums for
unusual extraordinary expenses. The State has in
part been enabled TO pay the large amount of extra
ordinary appropriations by anticipating the of
each ensuing year in the way of advances by the
era county treasurers provided law The amount
Of the advances has increased from year to year,
the pressure upon the treasury for funds has
grown until such advances for the fiscal year ending
Oct 81 1886, amounted TO the of $40, 8O4 IS.
The State government has, during said years, been
carefully and economically administered without
loss of single dollar to its by defalcation
official neglect of duty.
In the construction of the new State-house 5000.
600 has been appropriated and paid from the general
fund The construction of the female department of
the Indiana Hospital for Insane at indianapolis be-
gun in May. 1875. ard completed June 2. 1884
wholly paid for by appropriations out of the general
fund at cost of $722 600, of which sum $522O 600
kao hoo, ,Na;A c,, A,>pG tba
structon of the three additional Hospitals for Insane
has been entirely provided for out of the general fund
The amount authorized by appropriations to be
drawn from the general fund account of these in
solutions is 81 1863, 800 of which amount there had
bs.p paid at the close of the last fiscal the of
S747, 25573
I The appropriations from the general fund for ex-
traordinary expenses from the LIST day of November
1888 until the st day of November 1886 as taken
from the report of the Auditor of State. amount to
81 20S. o. and show the continual sapping of
the revenues, which only intended to pay the
expenses of administering the State
ment. The amount expended for like purposes from
Jan !, 1877, to Nov. l. 1883, perhaps large.
In the foregoing amount there has been attempt
include many small specific appropriations the in
crease in current expenses of great and growing
State occasoned by the legitimate expansion of our
public institutions the creation of Offices and the
4 enlargement of the duties of older offices.
After giving a statement of the manner and
terms Of the refundng of 5000, 900 of the States
n temporary loan Indebtedness and the negotiation
of an additional loan of 1856, 0G0, authorized by
the last General Assembly, he said:
The credit of the State has SO improved that said
loans negotiated at rate of interest with the
premiums received that will make said loans average
about 34 per cent and the refunding of said tempo
rary loan of April l. 1879, will make annual saw
ing of SIS, 775 in interest Under provisions of IAN
act to provide fund for the permanent endowment of
the Indiana University and for the investment of the
\ same" approved March 3. 1888. exceeding
$50, 900 of said permanent endowment fund had
been paid into the State treasury and the state need
ing loan to meet casual deficit in the and
TO pay the interest the public debt. the of
transferred from said fund TO the credit of the gen.
eral fund AS provided in said act non-negotable
bond of the State for said amount was made and is
sued by the Governor and Treasurer atested by the
Secretary of State with the State seal to the trustees
Of said university, dated Oct. /, 1885 payable in
fifty years at the option of the State bearing pei
N cent. interest. to be paid semar nually the first
days Of May and November in each year, until said
bond is paid The total amount borrowed for the
benefit of the general fund $500, 600, and, de
Quoting such amount from the amount of the said
raordinary expenses 81 EOS. $50 OF will show thai
I during said years 1888 1884 1885 and 1886 the
\ sum Of $54S $50 OF has been paid from the reve
4 nues of the State, and above the ordinary ex
n penses.
It will be apr aren't to you that the State cannot en-
gage in the construction of expensive and elaborate
X Improvement without increasing the tax levy fol
State purposes or borrow in the necessary moneys tt
a meet the additional cost of such improvements Con
siderng the excellent credit of the State have
hesitation in recommending the borrowing of the nee
essary funds in preference to Increasing the rate
II taxation
E The rate of interest which the State would be re
quired to pay would not exceed onehslf of the rat
which individual Taxpayers of the State would b.
compelled TO pay. and sinking fund to pay the bond
rapidly the State would have the right to redeem
would finally liqudate the States Indebtedness
The receipts the general fund from all
a exclusive Of 1857 936.75 advanced by counties an,
1878 215. as received on loans, for the fiscal yea
ending Oct 81, 1883 were ST. ,424 249 10, Will
the expenditures from the fund exclusive of ad
vances returned to counties during such year pursu
ant to appropriations, 81 0S3, 0S5.61. The ne
receipts to the fund, exclusive of advances b.
counties for the fiscal year ending Oct. 81. $50
We're 81 ,3o0.s4, while the expenditures from
- the same fund.- exclusive of advances returned b.
II counties during such year. pursuant to appropria
tions, were 81, 6l9 537.78 The expenditures of tn
last year equal to those of the former year be
cause the of the State have not been suff
3 eicnt to meet the appropriations
The State Ia paying annually about oneffth of It
entire revenue as interest its domestic debt whc
consists OF nonnegotiable school bonds of So, 904
1892 issued in 1867 and 1868. bearing per cen,
interest: negotiable Purdue University bond Q
$4,000, issued in sSl, bearing per cent inter
eAM and non negotiable State University bond
$Co 900 bearing per cent interest and earnestl
recommend reduction in the interest on the So
III So4 1888 % school bonds to or Ia per cent,
believe the revenues to the school fund would sti
continue to 10 sufficient.
Il II. however, il should be deemed preferable ina
much as the State can borrow money at much lowe
rate of interest loan could be authorized to pay
the entire non negotiable school bonds and after tl
payment thereof provide that the money shall be d
tribued TO the counties in the heretofore DR.
III vded by law, and that all school funds be loaned
the directed at rate of interest not O.
,4z seeding per cent per annuIn. Either method b.
III hsye, would meet with popular approval.
ia funding loan for such purpose were negotiate
at rate Of interest not exceeding per cent which
al believe to be possible. it would result in annu
saving OF interest of $l17 143 so, besides providir
"a argc amount to be loaned to the people of the Sta
III at q fair rate OF interest.
III IT'S evident that the barely sui1cie
10 meet the current expenses of the State government
X4 ana WITH decreased appraisement of nearly sol
~ VVoVoo OF the property in the State subject to tax
~ uon shows eonclusiyely that the money necessary
complete and equip the public buildings must
raised either by increased taxation or the negotiate
- OF temporary loan. In order Eto provide for q
wants OF the State and the completion and equipme
OF the public buildings now in process of cor ~,rr
- hon, sufficient loan should be authorize -,lnn
twenty years redeemable at the ptas.re of the Sta
- uter fifteen years at rate of interest not exceedi
10 Sia per cent. per annnm.
As a means of Creating sinking-fu for the fin
nungnshnient Of the State debt I would Rocco
mend that the present tax of two cents levied